Just reading about the 2004 price increases being imposed by UPS and FedEx, it strikes me that worries of deflation certainly aren’t playing out in certain infrastructure costs. UPS is taking prices for shipping goods by air up almost 5% while FedEx is increasing prices 2.5%.
Meanwhile, the airlines are getting hammered — following pre-announcements by Southwest and jetBlue. Airlines pricing is soft and may get softer as capacity remains to be filled.